In September’s update on RUT, I posted the following chart, showing both upside and downside targets for the index depending on how central bankers’ pronouncements were received over the next few days.

It never occurred to me that both the upside and downside targets would prove to be correct (and, eerily correct, at that.)

If that weren’t eerie enough, the index is, again, sitting at the gray channel midline, waiting to react to what central bankers have to say over the next few days.

continued for members…

The only adjustments I can make to the chart at this time are to move the upper and lower targets out a little and take a stab at a channel that, to my eyes, doesn’t look all that legit (few midline tags.)Though prevailing wisdom is that the CB’s will expand QE forever, sending stocks to new highs, it’s important to note that RUT never broke out of the yellow channel.  In fact, a drop to the .786 channel line in mid-November to test last October’s lows would make a whole lot of sense.Stay tuned.